Bob Taft on Budget & Economy

Republican OH Governor

Keep budget balanced without new taxes; hold spending

A tight budget requires tough decisions. In making those decisions, I had three goals:

To balance the budget without new taxes. We’ve done that.

To hold the line on spending for overhead and reduce the size of the bureaucracy.
We’ve done that.

And finally, and most importantly, to invest 50 percent of all new spending in education at all levels. I’m proud to report we’ve done that, too!

Source: 2001 State of the State Address to Ohio Legislature
, Jan 24, 2001

Let state meat inspection suffice for interstate shipments.

Taft signed the Midwestern Governors' Conference resolution:

WHEREAS, The federal Meat and Poultry Inspection Act prohibits the interstate shipment of state inspected meat and poultry products; and

WHEREAS, Twenty-five states, including eight in the Midwest, have developed individual state inspection programs for plants which do not currently participate in the interstate shipment of meat and poultry products; and

WHEREAS, Despite meeting federal requirements enforced through a state program, the lack of federal program approval prohibits these smaller state inspected plants from shipping beef, pork, poultry, sheep, lamb, or goat products in commerce across state lines; and

WHEREAS, This restriction unfairly and severely limits the smaller plants’ marketing options, particularly in the burgeoning Internet market; and

WHEREAS, The Midwestern Governors strongly support meat and poultry inspection plans that protect public health; now therefore be it

RESOLVED, That the Midwestern Governors urge Congress to pass legislation that removes this unfair marketing barrier but continues to insure safe meat and poultry products.

Bankruptcy reform: limit Chapter 7; protect states' role.

Taft adopted the National Governors Association policy:

The Governors are particularly concerned that bankruptcy reform legislation address the following issues:

Prevent Chapter 7 Use by Those with the Ability to Pay: Present bankruptcy law does not prevent use of Chapter 7 by those with ability to repay, nor does it require that debtors use Chapter 13, which would require them to repay creditors what the debtor can afford. The Governors strongly support federal efforts to prevent debtors from using Chapter 7 when they are financially able to pay some or all of their unsecured debts.

Encourage Payment of Domestic Support Obligations: Bankruptcy interferes significantly with states’ ability to assist citizens owed domestic support and to collect unpaid domestic support owed them. The Governors strongly encourage Congress to ensure that any federal bankruptcy reform requires that domestic support obligations have the highest possible repayment priority, that all domestic support obligations be nondischargeable,
and that commencement of bankruptcy not prevent the continued collection of child and other support obligations.

Give State Claims Parity with Federal Claims in Bankruptcy: Today, bankruptcy rightly gives certain preferences in payment to federal claims against the bankruptcy estate, but similar treatment is not always accorded state claims. The Governors strongly support congressional efforts to reform the treatment of state claims in bankruptcy to provide parity of treatment with federal claims.

Protect the State Role: The Governors oppose efforts to preempt state authority to determine exemptions under state bankruptcy law. Currently, debtors have a right to choose between federal and state exemptions. The Governors support efforts to shape bankruptcy reform policy that protects the rights of states to determine their own standards instead of having uniform federal regulations imposed without regard for individual state needs.

Uphold commitments to states before other spending.

Taft adopted the National Governors Association position paper:

The Issue

The major budget issue will be over the surplus and how big of a surplus there will be. How much will be dedicated to paying down the national debt, how much to tax cuts, how much to increase defense spending, what to do about key discretionary spending programs, and whether and how to change key entitlement programs, such as Medicaid, Medicare, and Social Security? How these decisions are made could have significant impacts on the federal-state partnership, especially as they affect vital health and human services programs. What will happen to funding for priority state domestic discretionary programs for the federal fiscal year? When will Congress act?

NGA’s Position

Before considering new spending initiatives or tax cuts, the federal government must first uphold its current commitments to the states.